Owners corporations FAQ

Instructional video

How to check your fees and payments online with PILOT OC

Fact sheets

PDF download Setting up a new owners corporation / activating an owners corporation

PDF download Renovating or extending your unit

PDF download Collecting debts in an Owners Corporation / fee collection procedure

PDF download Recovering money owed to an owners corporation

PDF download Charging Penalty Interest on overdue owners corporation fees

PDF download What is the owners corporation register?

PDF download GST and owners corporations – as at 8mar2017

PDF download Maintenance plan and the Maintenance fund

Frequently asked questions:

Q:Can I subdivide my unit?
You may be able to subdivide your Lot/s. Section 32AI of the Subdivision Act 1988 sets out the requirements for subdividing your Lot/s.
Q:Who is responsible for maintaining my unit?
A unit owner is responsible for keeping their property in a state of good and serviceable repair. Check with your manager to find out where your unit boundaries are.
Q:I want to renovate my unit – am I allowed to do this?
An owner is entitled to renovate the interior of their unit however there are procedures and may be rules that may apply to you in this situation. You must give notice to the owners corporation of any
application by the lot owner for a building permit or planning permit or the certification of a plan of subdivision affecting the lot.
Q:Do I have to pay my body corporate fees?
The Owners Corporation Act 2006 sets out the requirements for setting fees for Lot owners. If the correct procedures have been followed then you do have to pay your body corporate fees
Q:I bought a unit and the previous owner has unpaid fees – who is responsible for paying them?
Section 28 of The Owners Corporation Act 2006 states that “The owners for the time being and any purchaser in possession of, and any person entitled to receive the rents and profits from, a lot are liable to pay any outstanding fees, charge, contribution or amount owing to the owners corporation in respect of that lot. Essentially that means that any unpaid fees at the time of the unit sale transfer to the new unit owner. It is important to obtain an owners corporation certificate prior to settlement so fee adjustments can be made and you are not left in an undesirable situation.
Q:What are the insurance requirements for the developer (initial owner)
The Sale of Land Act 1962 sets out the initial owner / developers insurance requirements. Section 9AAA Insurance states: If an owners corporation for a plan of subdivision will be required by the Owners Corporations Act 2006 to effect insurance after the plan is registered, the vendor must effect insurance in accordance with that Act as if the vendor were the owners corporation, until— (a) if the owners corporation meets within 6 months after the plan is registered, the end of one month after its first meeting; and (b) in any other case, the end of 6 months after the plan is registered.
Q:Can I sell my unit if my owners corporation is not insured?
A person cannot sell a lot affected by an owners corporation unless the vendor or the owners corporation has a current insurance policy in accordance with the Owners Corporations Act 2006. If a unit is sold in an uninsured owners corporation the purchaser may avoid the sale at any time before the contract is completed.
Q:What is a Lot Liability?
The Lot Liabilities are set out on the plan of subdivision. It is a number that represents the share of owners corporation expenses that a unit owner is responsible for.
Q:What is a Lot Entitlement?
The Lot Entitlements are set out on the plan of subdivision. It is a number that represents the share of ownership in the common property that a unit owner holds as a tenant in common with the other unit owners.
Q:How can lot entitlement and liability be altered?
(1) If there is a unanimous resolution of the members, the owners corporation may apply to alter the lot entitlement or lot liability. In making any change to the lot entitlement, the owners corporation must have regard to the value of the lot and the proportion that value bears to the total value of the lots affected by the owners corporation. In making any change to the lot liability, the owners corporation must consider the amount that it would be just and equitable for the owner of the lot to contribute towards the administrative and general expenses of the owners corporation.
Q:What are the requirements for commercial lots in owners corporations?
Commercial owners corporations are governed by the same legislations as residential – the Owners Corporation Act 2006 and Owners Corporation Regulations 2007. The property assets are often more complicated and may require specialised skill and knowledge of other legislation. PILOT can manage your commercial owners corporation.
Q:Why get an owners corporation manager?
There are numerous laws and rules that an owners corporation has to comply with. To relieve the stressful burden and responsibility for property maintenance from voluntary Lot owner/s, it can be cost effective and hassle free to engage a body corporate manager.
Q:What happens when a unit owner wants to sell?
The owners corporation manager will prepare the statutory Section 151 Owners Corporation Certificate which sets out important information about the owners corporation and the particular unit. This makes up part of the Section 32 Vendors Statement sales document.
Q:I want to contact the other owners but they don’t live at the property – how can I find out their details?
Ask your manager for a copy of the Owners Corporation Register for a list of the units with the owners names and postal addresses of each. PILOT can email you the owners corporation register.
Q:What are the essential safety measures (ESM) at my property?
The essential safety measures will be set out on the occupancy permit for your property which is issued by the Building Surveyor. The essential safety measures provisions must be complied with. They generally include maintenance of fire safety equipment, emergency lighting, elevators, paths of exit, fire rated structure inspections, Air Conditioning and more.
Q:Can you sue a Body Corporate / Owners Corporation?
An owners corporation / body corporate can sue and be sued
Q:Can an Owners Corporation (Body Corporate) raise legal fees using an ordinary resolution?
No. In 2016, a VCAT case found that an Owners Corporation does not have power to raise annual fees for legal costs under section 23 of the Owners Corporation Act (power to set annual fees) and this does not permit an Owners Corporation to raise a one-off significant amount for litigation expenses. An extraordinary levy is required and where the amount is more than twice the current annual fees, a special resolution is required to authorise the extraordinary levy
Q:What are the rules of my Body Corporate?
Your body corporate rules are listed on the plan of subdivision for your owners corporation. If no special rules are mentioned then the model rules of an owners corporation apply.
Q:Do PILOT manage owners corporation on the Mornington Peninsula?
PILOT manage owners corporations all over the Mornington Peninsula including Mornington, Mount Martha, Mount Eliza, Safety Beach, Dromana and Rosebud. We also manage owners corporations in Westernport suburbs Somerville, Tyabb, Hastings, Bittern and Crib Point.
Q:Do PILOT manage owners corporation in Frankston?
PILOT manage owners corporations in Frankston South and Frankston.
Q:How much notice is required for an annual or special general meeting?
At least 14 days notice in writing is required to be provided to all Lot owners before an Annual General Meeting or Special General Meeting of the owners corporation
Q:I bought a new unit – how do I set up my new owners corporation?
Contact us for a quote to arrange the operation of your new owners corporation.
Q:If maintenance is required to the common area that’s for another Lot owner/s benefit, do I have to pay?
A manager may apply Section 49 of the Owners Corporation Act 2006 in cases where repairs/works are undertaken substantially for the benefit for a Lot owner/s. The Unit owner who benefits more, pays more in this case. The works can be to a unit or to the common property.
Q:I own a commercial/retail unit, does my tenant have to pay the owners corporation fees?
The Lot owner is ultimately responsible for paying the owners corporation fees and must continue to do so even if they are unable to recover them from their tenant. In your commercial/retail lease agreement, you may be entitled to be reimbursed by your tenant for the fees excluding fees for capital works.
Q:What is a general resolution of my owners corporation and when is it required?
It is when more than 50% of all Lot owners agree, at a meeting or by voting ballot, on a decision that requires a General Resolution. An example is electing a committee. Another example is appointing a gardener to maintain the common area.
Q:What is a special resolution of my owners corporation and when is it required?
It is when 75% of all Lot owners agree, at a meeting or by voting ballot, on a decision that requires a Special Resolution. An example is for approving expenditure that is more than twice the amount of the annual fees. Another example is to lease or licence part of the common property or to paint the units.
Q:What is an interim special resolution of my owners corporation?
It is when at least 50% of all Lot owners agree and no more than 25% of all Lot owners disagree, at a meeting or by voting ballot, on a decision that requires a Special Resolution. All lot owners must be notified of the interim special resolution within 14 days of the meeting and are given a chance to petition for a special meeting to overturn the interim special resolution.
Q:What is a unanimous resolution of my owners corporation and when is it required?
It is when 100% of all Lot owners agree, at a meeting or by voting ballot, on a decision that requires a Unanimous Resolution. An example is for disposing of all or part of the common property. Another example is for changing the Lot Liabilities and Entitlements.